MW: European stocks pull lower as banks decline, but weekly rise in sight
European stocks pulled back from their highest in more than a year Friday, with UBS Group PLC shares down following the Swiss lenderâ€™s financial update, but the broader market is on track for a weekly advance.
The Stoxx Europe 600 index SXXP, -0.42% shed 0.5% to 365.67, with only the consumer services Q0F, -0.82% and consumer goods Q0A, -0.24% sectors showing gains. But financial, telecom and health care shares were moving lower.
The pan-European index on Thursday closed up 0.3% at 367.50, to mark both a third straight day of gains and its highest close since Dec. 30, 2015, according to FactSet data.
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European stocks caught upside momentum this week as banking shares advanced and as a leap in U.S. stocks pushed the Dow Jones Industrial Average DJIA, +0.16% above 20,000 for the first time ever.
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The Stoxx Europe 600 Banks Index FX7, -1.12% was looking at a 1.7% rise for the week, which would break two weeks of losses. But the index pulled back 1.3% Friday, in part as UBS UBSG, -3.70% dropped 3.4%.
The Swiss bank said total operating income at its wealth management unit fell 5% in the fourth quarter compared with the same period a year earlier. While net profit fell to 738 million Swiss francs ($737.26 million), that result was better than analyst had expected.
Other movers: Tesco PLC TSCO, +9.58% shares jumped 9%, aiming for their largest percentage gain since January 2015, after the supermarket chain reached a deal to buy food wholesaler Booker Group PLC for Â£3.7 billion ($4.66 billion). Tesco also said itâ€™s planning to start replay dividends in fiscal 2018.
Booker shares BOK, +16.93% topped the Stoxx 600 by soaring 15.8%, and moved toward their largest daily gain since October 2008.
Banco de Sabadell SA SAB, +2.05% fell 1.2% as the Spanish bank said fourth-quarter net profit fell 51%, hurt by higher provisions to cover the cost of court-ordered reimbursements to mortgage borrowers.
Indexes: Germanyâ€™s DAX 30 index DAX, -0.17% shed 0.3% at 11,813.71, and Franceâ€™s CAC 40 index PX1, -0.50% fell 0.7% to 4,834.24.
Spainâ€™s IBEX 35 IBEX, -0.48% dropped 0.9% to 9,429.30. The U.K.â€™s FTSE 100 index UKX, -0.01% was flat around 7,161. Investors will watch for an update on trade talks Friday between U.K. Prime Minister Theresa May and U.S. President Donald Trump when the two meet in Washington.
The pound GBPUSD, -0.4684% was buying $1.2544, down from around $1.2675 late Thursday in New York, but was on track for a roughly 1.4% rise against the greenback this week.
The euro EURUSD, -0.0749% changed hands at $1.0683, up from $1.0670 on Thursday.